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Investing.com -- Swedish engineering consultancy firm Sweco AB (STO:SWECB) on Wednesday reported third-quarter results that exceeded analyst expectations, with EBITA reaching SEK 702 million, 12% above consensus estimates.
The company posted net sales of SEK 7,138 million in Q3, representing a 5% year-over-year increase and 1% above consensus forecasts. Organic growth contributed 4% to the sales increase, while acquisitions added 3%.
EBITA rose 19% compared to the same period last year, with the margin expanding to 9.8% from 8.7% in Q3 2024. The improvement was driven by pricing initiatives, higher billing ratios, and efficiency gains across operations.
Six of Sweco’s eight business areas showed year-over-year margin expansion. Germany & Central Europe led with a significant margin improvement to 14.6% from 10.3%, while Denmark reached 17.3% from 14.3%. Belgium, the Netherlands, the UK, and Norway also recorded solid margin gains.
Finland experienced a slight margin decline to 9.1% from 9.2%, while Sweden’s margin fell to 6.7% from 7.5%, primarily due to acquisition-related costs from Projektengagemang. Excluding these costs, Sweden’s underlying profitability was stronger.
The company’s billing ratio improved to 74.0% from 73.5% in Q3 2024, reflecting ongoing efficiency improvements across the business.
By region, the Netherlands recorded the strongest organic growth at 9%, followed by the UK at 11% and Germany & Central Europe at 13%. Sweden reported flat organic growth when adjusted for calendar effects.
Demand remained robust in energy, infrastructure, water, environment, and security & defense sectors, while buildings and industry segments, particularly residential and commercial real estate, continued to underperform.
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